Misconceptions of securitization, Financial Management

There are some misconceptions about securitization:

  • Poor quality originators end up in securitizing their assets.

  • A bank's best mortgages are exported from the balance sheet thereby lowering the quality of a bank's balance sheet.

  • Securitization involves selling the mortgage customer to the pool or SPV.

  • Securitization transfers the total risk.

  • Securitization lowers financing costs.

Posted Date: 9/8/2012 8:00:02 AM | Location : United States







Related Discussions:- Misconceptions of securitization, Assignment Help, Ask Question on Misconceptions of securitization, Get Answer, Expert's Help, Misconceptions of securitization Discussions

Write discussion on Misconceptions of securitization
Your posts are moderated
Related Questions
It is a policy feature of permanent life insurance that permits policyholders to left any dividends obtained with the insurer, where the dividends can gain interest. Accumulation o

Q. Show the Advantages of IRR Method? Advantages of IRR Method:- (i) Similar to the other DCF methods IRR methods as well take into consideration the time value of money.

Define operating cycle and long and short operating cycle? Use of operating cycle? Can someone give me assistance on these questions??

Q. Causes of Risks 1) Wrong decision of what to invest in. 2) Wrong timing of investments. 3) Nature of instruments invested such as shares or bonds, chit funds, benefit

formula and explanation for Gordon''s dividend capitalization method

Government securities are the most important and unique financial instruments in the financial markets of any economy. Government of India Securities (GOI Sec) in

Swap-Linked Notes: Interest rate swaps are derivative products which help in transforming the cash flows of existing debt issues. These are not only useful in covering the exis

In modern strategic management accounting it is important to use appropriate performance measurements and control concepts, underpinned by theories and models applied in a variety


what is the meaning of market feasibility? What are its different types with their degree?